U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the quarterly period ended: March 31, 2000

                                       or

[_]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ____________________ to ____________________

Commission File Number:  0-27077

                             TREMONT ADVISERS, INC.
        (Exact name of small business issuer as specified in its charter)


            Delaware                                              06-1210532
  (State or other jurisdiction                                 (I.R.S. Employer
or incorporation or organization)                             Identification No)

                 555 Theodore Fremd Avenue, Rye, New York 10580
               (Address of principal executive offices) (Zip Code)

                                 (914) 925-1140
                           (Issuer's telephone number)


              (Former name, former address and former fiscal year,
                          if changed since last report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter  period) that the issuer was required to file such reports,  and (2) has
been subject to such filing requirements for the past 90 days.
     Yes _X_ No___

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDING
                         DURING THE PRECEDING FIVE YEARS

     Check  whether the issuer filed all  documents  and reports  required to be
filed by Section 12, 13, or 15(d) of the Exchange Act after the  distribution of
securities under a plan confirmed by a court.
     Yes ___ No___

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares outstanding of the Registrant's Class A Common Stock, $0.01
par value,  as of the close of business on May 10, 2000 was  1,595,118,  and the
number of shares outstanding of the Registrant's Class B Common Stock, $0.01 par
value, was 4,020,661 as of the same date.


<PAGE>


                                      INDEX


                             Tremont Advisers, Inc.



PART I - FINANCIAL INFORMATION                                              Page

Item 1.  Financial Statements. (Unaudited)

    Condensed Consolidated Balance Sheets - March 31, 2000 (unaudited)
       and December 31, 1999 (audited)                                        1

    Condensed Consolidated Statements of Income -
       three months ended March 31, 2000 and 1999                             2

    Condensed Consolidated Statement of Shareholders' Equity -
       three months ended March 31, 2000                                      3

    Condensed Consolidated Statements of Cash Flows -
       three months ended March 31, 2000 and 1999                             4

    Notes to Condensed Consolidated Financial Statements                      6


Item 2.  Management's Discussion and Analysis                                13



Part II - Other Information

Item 1.  Legal Proceedings                                                   16

Item 6.  Exhibits and Reports on Form 8-K                                    16

Signature                                                                    16

Exhibit 27 - Financial Data Schedule                                         17







<PAGE>



                         Part 1 - Financial Information

Item 1. Financial Statements.

                             Tremont Advisers, Inc.
                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                            March 31, 2000       December 31, 1999
                                                            --------------       -----------------
                                                              (Unaudited)            (Audited)
<S>                                                          <C>                   <C>
Assets
Current Assets
  Cash and cash equivalents                                  $  2,830,400          $  2,879,300
  Accounts receivable, net                                      3,960,200             3,682,700
  Dividend receivable                                                --                  31,000
  Prepaid expenses and other assets                               317,200               263,800
                                                             ------------          ------------
Total current assets                                            7,107,800             6,856,800


Investments (cost $3,292,400 and $3,092,400)                    4,586,800             4,243,500
Investments in joint ventures (cost $483,000 and $408,600)      2,246,500             2,231,700


Fixed assets, net                                                879,700                774,500

Goodwill, net                                                  1,945,300              1,999,800

Other assets                                                      30,300                 30,300

                                                             ------------          ------------
Total assets                                                 $ 16,796,400          $ 16,136,600
                                                             ============          ============

Liabilities and shareholders' equity
Current liabilities
  Accounts payable                                           $    381,300          $    563,800
  Accrued expenses                                              2,205,600             2,492,800
  Deferred revenue                                              1,267,900             1,363,500
  Income taxes payable                                            222,300               191,700
  Deferred income taxes payable                                    38,300                32,600
                                                             ------------          ------------
Total current liabilities                                       4,115,400             4,644,400

Deferred income taxes payable                                   1,099,400               836,800


Shareholders' equity
  Preferred Stock $1 par value, 350,000 shares
     authorized, issued and outstanding - none                       --                    --
  Class A Common Stock, $0.01 par value, 5,000,000 shares
     authorized, 1,595,118 shares issued and outstanding           16,000                16,000
  Class B Common Stock, $0.01 par value, 10,000,000 shares
     authorized, 4,020,349 shares issued and outstanding           40,200                40,200
Additional paid in capital                                      7,901,800             7,901,800
Retained earnings                                               3,623,300             2,698,200
Cumulative foreign currency translation adjustment                    300                  (800)
                                                             ------------          ------------
Total shareholders' quity                                      11,581,600            10,655,400
                                                             ------------          ------------
Total liabilities and shareholders' equity                   $ 16,796,400          $ 16,136,600
                                                             ============          ============
</TABLE>


See accompanying notes.

Note:  The  Condensed  Consolidated  Balance Sheet at December 31, 1999 has been
       derived from the audited financial statements as of that date.


                                       1
<PAGE>


                             Tremont Advisers, Inc.
                   Condensed Consolidated Statements of Income
                                   (Unaudited)


                                                         Three Months Ended
                                                              March 31
                                                         2000           1999
                                                     -----------    -----------
Revenues
Consulting fees                                      $ 4,299,900    $ 3,083,800
Database information sales                               388,400        143,300
Commissions                                               84,900        100,400
Performance fees                                          82,000         50,300
                                                     -----------    -----------
Total revenues                                         4,855,200      3,377,800


Expenses
Compensation                                           1,874,900      1,262,900
General and administrative                               960,800        808,500
Consulting                                               529,200        373,000
Depreciation                                              85,300         51,200
Amortization of intangibles                               54,500        110,900
                                                     -----------    -----------
Total expenses                                         3,504,700      2,606,500

Equity earnings of investments                           236,300        101,900
Loss from joint ventures                                 (59,600)        (8,100)
Other income, net                                          3,800         10,600
                                                     -----------    -----------

Income before income taxes                             1,531,000        875,700
Provision for income taxes                               605,900        290,100
                                                     -----------    -----------
Net income                                           $   925,100    $   585,600
                                                     ===========    ===========

Net income per common share-basic*                   $      0.16    $      0.11
                                                     ===========    ===========

Net income per common share - assuming dilution*     $      0.16    $      0.10
                                                     ===========    ===========

See accompanying notes.

*    March 31,  1999 per share  data was  adjusted  for the five for four  stock
     split paid on August 16, 1999.


                                       2
<PAGE>


<TABLE>
<CAPTION>
                                                                     Tremont Advisers, Inc.
                                                    Condensed Consolidated Statement of Shareholders' Equity
                                                                           (Unaudited)

                                               Common Stock              Additional                           Total
                                                 Par Value                Paid In         Retained        Shareholders'
                                          Class A         Class B         Capital         Earnings           Equity
                                         -------------------------------------------------------------------------------
<S>                                      <C>            <C>             <C>              <C>               <C>
Balance at December 31, 1999             $ 16,000       $ 40,200        $ 7,901,800      $ 2,698,200       $10,655,400

Comprehensive Income:

Net Income                                                                                   925,100           925,100

Foreign Currency Translation                                                                                     1,100
                                         -------------------------------------------------------------------------------

Comprehensive Income                                                                                           926,200
                                         -------------------------------------------------------------------------------

Balance at March 31, 2000                $ 16,000       $ 40,200        $ 7,901,800      $ 3,623,300       $11,581,600
                                         ===============================================================================
</TABLE>


See accompanying notes.


                                       3
<PAGE>



                             Tremont Advisers, Inc.
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

                                                        Three Months Ended
                                                             March 31
                                                        2000           1999
                                                     -----------    -----------
Operating Activities
Net income                                           $   925,100    $   585,600
Adjustments to reconcile net income
  to cash provided by operating activities:
  Depreciation                                            85,300         51,200
  Amortization of intangibles                             54,500        110,900
  Equity earnings of investments                        (236,300)      (101,900)
  Losses from joint ventures                              59,600          8,100
  Deferred income taxes payable                          268,300         62,700
  Foreign currency translation adjustment                  1,100         (1,300)
Changes in operating assets and liabilities:
    Accounts receivable                                 (277,500)      (243,100)
    Dividend receivable                                   31,000           --
    Other assets                                            --          162,900
    Prepaid expenses and other                           (53,400)        10,000
    Accounts payable                                    (182,500)       (98,900)
    Accrued expenses                                    (287,200)      (277,100)
    Deferred revenue                                     (95,600)           300
    Income taxes payable                                  30,600        205,700
                                                     -----------    -----------
Net cash provided by operating activities                323,000        475,100

Investing activities
Purchase of fixed assets                                (190,500)       (60,100)
Withdrawal from investments                              193,000           --
Purchase of investments                                 (300,000)      (688,800)
Cash acquired from acquisition of TASS                      --          102,000
Investments in joint ventures                            (74,400)          --
                                                     -----------    -----------
Net cash used by investing activities                   (371,900)      (646,900)

Financing activities
Proceeds from issuance of Class B Common Stock              --          357,200
Exercise of Class B Common Stock options                    --           75,000
Tax benefit from exercise of stock options                  --           19,300
                                                     -----------    -----------
Net cash provided by financing activities                   --          451,500

Net increase (decrease) in cash and cash equivalents     (48,900)       279,700
Cash and cash equivalents at beginning of period       2,879,300      1,893,800
                                                     -----------    -----------
Cash and cash equivalents at end of period           $ 2,830,400    $ 2,173,500
                                                     ===========    ===========

See accompanying notes.


                                       4
<PAGE>



                             Tremont Advisers, Inc.
             Condensed Consolidated Statements of Cash Flows (con't)
                                   (Unaudited)


Supplemental disclosures of cash flow information:

                                                          Three Months Ended
                                                                March 31
                                                          2000           1999
                                                       ----------     ----------
Financing activities
Noncash transactions related to the
      issuance of Class B Common Stock in
      the Tass acquisition                             $     --       $1,428,600


Investing activities
Liabilities assumed in the Tass acquisition
     Deferred revenue                                        --          793,600
     Accounts payable                                        --           39,200
     Accrued expenses                                        --          411,500
     Short-term debt                                         --          236,800


Assets acquired in the Tass acquisition
     Fixed assets, net                                       --           81,100
     Accounts receivable                                     --          184,500
     Prepaid and other                                       --           47,000
     Customer contracts                                      --          555,500
     Goodwill                                                --        2,181,400

Accrued acquistion costs                                     --          241,800


See accompanying notes.


                                       5
<PAGE>


                             Tremont Advisers, Inc.

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)


NOTE A - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly,  they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of management,  all adjustments (consisting
of  normal  recurring  accruals)  necessary  for a fair  presentation  have been
included.  Operating  results for the three  months ended March 31, 2000 are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2000. For further information,  refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual Report on Form
10-KSB for the fiscal year ended December 31, 1999.

NOTE B - Summary of Significant Accounting Policies

Use of Estimates - The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from such estimates.

Principles of Consolidation - The condensed  consolidated  financial  statements
include the accounts of the Company and it's majority  owned  subsidiaries.  All
inter-company transactions and accounts have been eliminated in consolidation.

Intangibles - Goodwill represents the excess of purchase price and related costs
over the value  assigned to the net tangible  assets of the  business  acquired.
Goodwill is amortized on a straight-line  basis over ten years. Other intangible
assets, including customer contracts, which are included in prepaid expenses and
other assets, are amortized over their economic lives, generally one year.

Earnings per Share - Basic  earnings per share is computed based on the weighted
average number of common shares outstanding. Diluted earnings per share reflects
the increase in the weighted  average number of common shares  outstanding  that
would result from the assumed exercise of outstanding stock options,  calculated
using the treasury stock method.  All prior year per share and share outstanding
data have been  restated  to reflect the impact of the five for four stock split
paid on August 16, 1999.

Minority  Interest  - The  Company  presently  owns  65% of  Tremont  Investment
Management  Inc.  ("TIMI").   For  financial  reporting  purposes,  the  assets,
liabilities  and losses of TIMI have been  included in the  Company's  condensed
consolidated financial statements.

Concentrations  of  Credit  Risk - The  Company's  accounts  receivable  are not
concentrated  in any specific  geographic  region,  but are  concentrated in the
investment  industry.  The  Company's  exposure to credit risk  associated  with
nonpayment  by  customers  is  affected  by  conditions  within  the  investment
industry.

Income Taxes - The provision for income taxes  includes  federal and state taxes
currently  payable,  after  reduction  for  undistributed  earnings  of  foreign
subsidiaries  considered permanently


                                       6
<PAGE>


reinvested,  and those  deferred  because of temporary  differences  between the
financial  statement  and the tax basis of assets and  liabilities.  A valuation
allowance is recorded,  based on available  evidence when it is more likely than
not that some portion or all of the deferred tax assets will not be realized.

Reclassifications  - Certain  prior  year  balances  have been  reclassified  to
conform with current year's presentation.

NOTE C - Investments

The  following  table  sets  forth   financial   information  of  the  Company's
investments in certain proprietary limited partnerships at March 31, 2000.


<TABLE>
<CAPTION>
                                                           American Masters   American Masters    American Masters      Tremont
                                                             Broad Market       Broad Market       Market Neutral       Masters
                                                              Fund, L.P.      Prime Fund, L.P.       Fund, L.P.          Fund
                                                           ------------------------------------------------------------------------
                                                            (Unaudited)        (Unaudited)         (Unaudited)         (Unaudited)
<S>                                                        <C>                <C>                 <C>                 <C>
Total assets                                               $ 315,621,800      $ 370,784,800       $  12,002,200       $     580,400

Total liabilities                                              2,126,000        114,287,100              28,600                --

Net investment income/(loss)                               $     972,100      $    (982,400)      $     (30,800)      $        --

Realized and unrealized gain                                  14,340,200         16,629,000             446,300              24,100
                                                           ------------------------------------------------------------------------
Net income                                                 $  15,312,300      $  15,646,600       $     415,500       $      24,100
                                                           ========================================================================

General partner                                                      TPI                TPI                 TFI                TIMI
GP investment in partnership--at market value              $   1,006,400      $     592,200       $     721,000       $     580,400
GP investment in partnership--at cost                            423,600            467,900             605,000             500,100
Proportionate share of earnings (1)                               50,400             37,800              26,100              24,100
Proportionate share of fund's net assets                            0.32%              0.23%               6.02%             100.00%
</TABLE>

(1)  Proportionate   share  of  earnings  is  included  in  equity  earnings  of
investments in the condensed consolidated financial statements.


Meridian  Horizon Fund, L.P. - Meridian Horizon Fund, L.P. is a Delaware limited
partnership  that was organized for the purpose of achieving a high total return
and preservation of capital utilizing a multi-manager approach to investing.  At
March 31, 2000 and December 31, 1999, total assets of the fund were $481 million
and $372 million, respectively. In addition, net investment losses for the three
months  ended  March  31,  2000 and 1999  were  $1.7  million  and $.9  million,
respectively,  and realized and  unrealized  gains were $40.4  million and $12.4
million,  respectively,  resulting  in net  income  of $38.7  million  and $11.5
million,  respectively.  At March 31, 2000 and  December  31,  1999,  TPI had an
investment  of  $538,100   (cost  -  $250,000)  and  $501,500   (cost-$250,000),
respectively,  representing  .12% and  .14%,  respectively,  of  Meridian's  net
assets. For the three months ended March 31, 2000 and 1999, TPI's  proportionate
share of Meridian's income is $36,600 and $20,100, respectively.

Tremont Broad Market Fund,  LDC - Tremont  Broad Market Fund,  LDC ("TBMF") is a
Cayman  Island  limited  duration  corporation  organized  for  the  purpose  of
achieving  capital  growth  through  hedged  investments.  At March 31, 2000 and
December 31, 1999,  TBL's  investment in TBMF was $998,500 (cost - $900,000) and
$640,900 (cost - $600,000), respectively. TBL's


                                       7
<PAGE>


proportionate share of operating income is $57,600 and none,  respectively.  TBL
serves as the investment adviser, administrator and registrar and transfer agent
of TBMF.

NOTE D -Investments in Joint Ventures

At March 31,  2000 and  December  31,  1999,  TBL's  investment  in Tremont  MRM
Services Limited (TMRM), an international risk management  company  incorporated
under the laws of  Bermuda,  in which TBL has a 38.75%  interest,  was  $504,900
(cost - nil) and $394,900 (cost - nil), respectively. In addition, for the three
months  ended March 31, 2000 and 1999,  TBL's  proportionate  share of operating
income was $110,000 and none,  respectively  TMRM provides product  development,
marketing and administrative  services to TIIL. On April 11, 2000, TMRM declared
and paid a dividend of $111,600.

At March 31, 2000 and December 31, 1999,  TBL's investment in FITX Group Limited
("FITX") was  $1,680,400  (cost - $420,700)  and  $1,775,600  (cost - $346,300),
respectively.  For the three  months  ended  March 31,  2000  and,  1999,  TBL's
proportionate share of losses were $169,600 and none respectively.  In addition,
FITX has agreed to pay TBL on-going annual  royalties for net revenues earned in
connection  with the on-line usage of the TASS+  database.  These royalties were
not significant for the three months ended March 31, 2000.


NOTE E - Accrued Expenses

Accrued expenses consist of the following:

                                        March 31, 2000      December 31, 1999
                                        --------------      -----------------
                                          (Unaudited)           (Audited)

     Consulting fees                      $1,228,600           $1,027,200
     Compensation                            514,900              507,000
     Professional fees                        94,200              262,500
     Short-term notes payable                113,600              368,400
     Employee benefits payable               162,800              138,800
     Other                                    91,500              188,900
                                          ==========           ==========
                                          $2,205,600           $2,492,800
                                          ==========           ===========

NOTE F - Stock Options

A summary of the  Company's  stock option  activity for three months ended March
31, 2000 is as follows:

     Outstanding-beginning of period:                 782,872
     Granted                                             --
     Exercised                                           --
     Lapsed                                           -------
     Outstanding-end of period                        782,872
                                                      =======

     Exercisable at end of period                     540,127
                                                      =======



                                       8
<PAGE>


NOTE G - Income Taxes

Deferred  income  taxes  reflect  the net tax effects of  temporary  differences
between the carrying  amounts of assets and liabilities for financial  reporting
purposes and the amounts used for income tax purposes. Significant components of
the Company's  deferred tax  liabilities and deferred tax assets as of March 31,
2000 and December 31, 1999 are as follows:

<TABLE>
<CAPTION>
                                                            March 31 2000       December 31 1999
                                                            -------------       ----------------
<S>                                                          <C>                  <C>
Deferred tax liabilities:
   Tax over book depreciation                                $    20,000             $    16,600
   Unrealized appreciation in limited partnerships                42,400                  36,700
   Undistributed earnings of foreign subsidiary                1,105,600                 829,000
                                                             -----------             -----------
Total deferred tax liabilities                                 1,168,000                 882,300

Deferred tax assets:
   Net operating loss carryforward of foreign subsidiaries       330,200                 248,800
   Bad debt reserves                                               4,100                   4,100
   Organization costs                                                400                     800
   Deferred revenue of foreign affiliate                          25,800                   8,000
   Valuation allowance                                          (330,200)              (248,800)
                                                             -----------             -----------
Total deferred tax assets                                         30,300                  12,900
                                                             -----------             -----------
Net deferred tax liability                                   $ 1,137,700             $   869,400
                                                             ===========             ===========
</TABLE>

The income tax provision gives effect to permanent differences between financial
and taxable income,  resulting in a higher effective tax rate than the statutory
income tax rate. The  reconciliation of income tax attributable to income before
income  taxes  computed at the U.S.  federal  statutory  tax rates to income tax
expense is:

<TABLE>
<CAPTION>
                                                             Three months ended
                                                                  March 31
                                                    2000                            1999
                                           ------------------------------------------------------
                                            Amount         Percent         Amount         Percent
                                           ------------------------------------------------------
<S>                                         <C>             <C>           <C>              <C>
Statutory federal income tax rate           $520,500        34.0          $297,800         34.0
State taxes, net of federal benefit           52,900         3.5            28,000          3.2
Permanently reinvested foreign income             --          --           (68,000)        (7.8)
Other                                         32,500         2.1            32,300          3.7
                                           ------------------------------------------------------
                                            $605,900        39.6          $290,100         33.1
                                           ======================================================
</TABLE>

During the three months ended March 31,  2000,  the Company made federal  income
tax payments and state income,  minimum and capital tax payments of $240,000 and
$67,000, respectively. No federal or state income tax payments were made for the
three months ended March 31, 1999.

Deferred  income  taxes  were not  provided  on  certain  undistributed  foreign
earnings  (cumulatively  $1,170,000  at  March  31,  2000) of TBL  because  such
undistributed earnings are expected to be


                                       9
<PAGE>


reinvested   indefinitely   overseas.  If  these  amounts  were  not  considered
permanently  reinvested,  additional  deferred taxes of  approximately  $397,800
would have been provided.

At March 31, 2000 and 1999, the Company had no net operating loss  carryforwards
for U.S. federal tax purposes. At March 31, 2000, TIMI, the Canadian subsidiary,
and TASS, the U.K. subsidiary, have generated cumulative net operating losses of
approximately  $276,000  and  $664,000,  respectively,   against  which  a  full
valuation  allowance has been  recorded.  The net  operating  loss carry forward
period for TIMI is seven years and there is no  limitation  on the carry forward
loss period for TASS.

NOTE H - Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>
                                                                         Three months ended March 31
                                                                             2000         1999
                                                                          ----------   ----------
<S>                                                                       <C>          <C>
Numerator:

     Net Income - numerator for basic and dilutive earnings per share     $  925,100   $  585,600
     (income available to stockholders)

Denominator:

     Denominator for basic earnings per share - weighted average shares    5,615,467    5,357,208

Effect of dilutive securities:

     Employee stock options                                                  329,969      277,542
                                                                          ----------   ----------

Denominator for diluted earnings per share - adjusted weighted-average
     shares and assumed conversions                                        5,945,436    5,634,750
                                                                          ==========   ==========

Basic earnings per share                                                  $     0.16   $     0.11
                                                                          ==========   ==========

Diluted earnings per share                                                $     0.16   $     0.10
                                                                          ==========   ==========
</TABLE>


NOTE I - Contingencies

The Company is being sued by a former  employee  for alleged  breach of contract
and defamation.  The Company  believes that the suit is without merit;  however,
should the plaintiff  prevail,  the Company  believes that it is likely that the
damages will not be material to the Company's  consolidated  financial condition
or results of operations.


                                       10
<PAGE>


NOTE J - Segment and Geographic Data

The Company is a holding company having three core areas of business: consulting
services,  information  and research,  and  investment  products.  The Company's
clients are investment funds,  investment managers,  institutional investors and
high-net-worth  individuals  to whom the Company's  subsidiaries  provide advice
concerning the  organization  and management of their  investment  portfolio and
programs.  The Company also provides specialized  investment services,  sponsors
and manages its own  proprietary  single-manager  and  multi-manager  investment
funds, as well as providing  consulting services to investment  management firms
and individual investment advisers. The Company derives a significant portion of
its  revenues  from  proprietary   asset-based  fees  and  consulting   services
agreements  with  single-manager  and  multi-manager  investment  funds or their
sponsors and advisers.

The following  table provides a summary of the types of fees earned with respect
to each of the Company's core areas of business:

                                                           Three months ended
                                                                March 31
                                                          2000           1999
                                                       -------------------------
                                                              (Unaudited)
Revenues

Proprietary investment funds
  Asset-based fees                                     $2,622,400     $1,761,300

Consulting services
  Asset-based fees                                      1,206,200        944,300
  Performance-based fees                                   82,000         50,300
  Annual retainer and special project fees                344,800        319,200
  Administration fees                                     126,500         59,000
  Commissions                                              84,900        100,400
                                                       ----------     ----------
                                                        1,844,400      1,473,200

Database sales                                            388,400        143,300
                                                       ----------     ----------
Total revenues                                         $4,855,200     $3,377,800
                                                       ==========     ==========


The following table provides a summary of the types of fees earned by geographic
location:

                                                           Revenues (a)
                                                             March 31
                                                    2000                 1999
                                                 -------------------------------
                                                           (Unaudited)

United States                                    $2,881,900           $2,123,900
Bermuda                                           1,598,200            1,110,600
Canada                                                 --                   --
United Kingdom                                      375,100              143,300
                                                 ----------           ----------
Total Revenues                                   $4,855,200           $3,377,800
                                                 ==========           ==========

(a) Revenues are attributed to countries based on the location of the subsidiary
performing the services.



                                       11
<PAGE>



Long-lived assets are substantially  located in the United States and the United
Kingdom.

For the  three  months  ended  March  31,  2000 and  1999,  certain  proprietary
investment funds accounted for approximately 46.4% and 48.1%,  respectively,  of
the Company's consolidated revenues, as follows:

                                                           Three months ended
                                                                March 31

                                                        2000              1999
                                                        ------------------------
                                                             (Unaudited)

American Masters Broad Market Fund, L.P.                14.2%             14.2%
American Masters Broad Market Prime Fund, L.P.          17.8%             17.9%
Kingate Global Fund Class B Shares                      14.4%             16.0%



                                       12
<PAGE>


Item 2. Management's Discussion and Analysis

The Company's  revenues are derived from consulting and  specialized  investment
services provided to institutional and other clients, as well as management fees
from certain funds under management. Consulting fees are generally a function of
the  amount of assets  under  management  and the  percentage  fees  charged  to
clients.  Management fees are based on a percentage of the assets of the managed
fund and are usually  paid on a monthly or  quarterly  basis.  The Company  also
receives  asset-based fees for investments  placed by Tremont  (Bermuda) Limited
("TBL") in certain  offshore mutual funds and Tremont  Securities,  Inc. ("TSI")
for assets placed in certain domestic limited partnerships. The Company provides
other  consulting  services  generally  on a fixed fee basis,  whether as annual
retainer  fees or single  project  fees.  With the  purchase of TASS  Investment
Research  Limited ("TASS") on March 11, 1999, the Company also has revenues from
the sale of electronic database  information.  The Company's principal operating
expenses  consist of its costs of personnel and independent  consultants.  It is
management's  intention  to  continue  to focus the  Company  on  launching  new
products and taking advantage of its growing  world-wide  relationships in order
to expand its operations.

Consulting  fees earned for the three months  ended March 31, 2000  increased by
$1,216,100,  or 39.4%, from $3,083,800 for the three months ended March 31, 1999
to  $4,299,900  for the three  months  ended March 31,  2000.  At the  Company's
principal domestic subsidiary,  Tremont Partners, Inc. ("TPI"),  consulting fees
increased  from  $1,993,400  for  the  three  months  ended  March  31,  1999 to
approximately  $2,685,000  for the  three  months  ended  March 31,  2000.  This
increase was primarily due to increases in revenues from increased  assets under
management in the Company's proprietary products,  American Masters Broad Market
Prime Fund,  L.P.  ($259,200  increase) and American  Masters Broad Market Fund,
L.P.  ($211,700  increase).  In  addition,  consulting  fees  increased  due  to
increases in fees from  non-proprietary  investment  funds, such as the Meridian
Horizon Fund, L.P. ($107,800  increase).  At TBL, consulting fees increased from
$1,059,000 for the three months ended March 31, 1999 to approximately $1,510,300
for the three months ended March 31, 2000. This increase was primarily due to an
increase in revenues as a result of increased  assets under  management from the
Company's  proprietary  products,  Tremont Broad Market, LDC ($234,000 increase)
and Kingate Global Fund Class B Shares ($156,600 increase), as well as increases
in assets within investment vehicles of other clients.

The  placement   agent  fees  received  by  TSI,  the  Company's   wholly  owned
broker-dealer  subsidiary,  increased  from  $27,500 for the three  months ended
March 31, 1999 to $33,700 for the three months ended March 31, 2000.  Consulting
fees earned by Tremont Futures,  Inc.  increased from $2,600 for the first three
months ended March 31, 1999 to $22,500 for the three months ended March 31, 2000
primarily as a result of increased  assets under  management by American Masters
Market Neutral Fund,  L.P. The remaining  increase in consulting fees relates to
fees earned at conferences ($48,400) given to promote the TASS+ database.

Performance fees for the three months ended March 31, 2000 increased by $31,700,
or 63.0%,  as compared to the three months  ended March 31, 1999  primarily as a
result  of  underlying   investment   vehicles   outperforming   pre-established
benchmarks.

Database  information  sales  increased by $245,100 or 171.0% as a result of the
Company acquiring TASS in March,  1999. Its operations have been included in the
statements of income from the date of acquisition  (ie. one month in 1999 versus
three months in 2000).


                                       13
<PAGE>


Commissions decreased by $15,500, or 15.4%, for the three months ended March 31,
2000 as  compared to the three  months  ended March 31,  1999.  These  decreases
resulted primarily from decreased trading activities at TSI.

Management  expects that during the  remainder of 2000 the Company will continue
to develop relationships with additional entities. The Company is also utilizing
these  relationships  to create  diversified  ways to package and distribute its
proprietary products. In addition, management expects performance fee revenue to
increase during periods of positive  market  conditions,  but management  cannot
predict  with any  accuracy  whether  such  income  from  performance  fees will
continue in the future due to changing market conditions and outside factors.

Compensation  expense  increased  for the three  months  ended March 31, 2000 by
$612,000,  or 48.5%,  as compared to the three months ended March 31, 1999, as a
result of the Company's acquisition of TASS, as well as its continued efforts to
attract  and  retain  qualified  employees.   These  efforts,  as  well  as  the
acquisition of TASS,  resulted in an increase in the number of employees from 51
at March 31, 1999 to 62 at March 31, 2000.  Compensation  expense also increased
due to salary increases for certain  employees that became effective  January 1,
2000 and as a result of  increased  health care costs due to the increase in the
number of employees.

General   and    administrative    expenses    consist    primarily   of   rent,
telecommunications,  travel  and  entertainment,  professional  fees  and  other
related expenses. General and administrative expenses for the three months ended
March 31, 2000  increased by $152,300 or 18.8%,  as compared to the three months
ended March 31, 1999.  The increase in general and  administrative  expenses was
primarily related to the Company's continued expansion to service its growth and
the inclusion of TASS for the three months ended March 31, 2000 versus one month
for the period ended March 31, 1999.

Consulting expenses increased $156,200 or 41.9% for the three months ended March
31, 2000 as compared to the three  months  ended March 31, 1999  primarily  as a
result of the increase in revenues from the clients that  participate in revenue
sharing arrangements. For example, TPI and TBL have revenue sharing arrangements
with other parties relating to certain clients.

Equity  earnings of investments  increased  $134,400,  or 131.9%,  for the three
months  ended March 31, 2000 as  compared  to the three  months  ended March 31,
1999. This increase was a result of increased performance as well as an increase
in the amount  invested by the Company.  Management  expects equity  earnings to
continue  to  increase  during  periods  of  positive  market  conditions,   but
management  cannot predict with any accuracy whether such earnings will continue
in the future due to changing market conditions.

Profitability  is dependent  on the ability of the Company to maintain  existing
client  relationships,  several of which  currently  account  for a  significant
portion of the Company's  revenues,  to increase assets under management for its
clients, and to market its services to new accounts.

Cash  provided by  operations  was $323,000 for the three months ended March 31,
2000 as compared to cash provided by operations of $475,100 for the three months
ended March 31, 1999.  This  decrease  was  primarily a result of the changes in
amortization  of  intangibles,  accounts  payable,  other  assets,  income taxes
payable, and equity earnings of investments  partially offset by the increase in
net income and losses from joint ventures. Cash provided by financing activities
decreased  due to issuance of Common  Stock in the three  months ended March 31,
1999 that did not recur in 2000.  These  changes  in cash flow were  offset by a
decrease in investing  activities  as well as a return of capital from  Gamtree,
L.P.


                                       14
<PAGE>


At March  31,  2000  the  Company  owned  30,000  shares  of  common  stock of a
non-public  financial  services company formed in 1996. The shares were received
by the Company as a result of an employee's  participation  as a board member of
such company. At March 31, 2000, the shares of common stock were valued at zero.

The Company  believes it has adequate  capital  resources and working capital to
bring to market those products  currently in the  developmental  stage, and that
the revenue  stream  from  these,  as well as from  existing  products,  will be
sufficient to support future  growth.  The Company has no material short term or
long term debt obligations.

The Company is being sued by a former  employee  for alleged  breach of contract
and defamation.  The Company  believes that the suit is without merit;  however,
should the plaintiff  prevail,  the Company  believes that it is likely that the
damages will not be material to the Company's  consolidated  financial condition
or results of operations.

In prior  years,  the Company  discussed  the nature of its plans to become Year
2000 ready.  In late 1999, the Company  completed its remediation and testing of
systems. As a result of those planning and implementation  efforts,  the Company
experienced  no  significant   disruptions  in  mission   critical   information
technology  and  non-information  technology  systems and believes those systems
successfully responded to the Year 2000 date change. The Company is not aware of
any material problems resulting from Year 2000 issues, either with its products,
its internal  systems,  or the products  and services of third  parties.  During
2000,  the  Company  expects to  remediate  certain  non-critical  systems at an
estimated cost of $235,000 that will be funded through  operating cash flows. Of
the total remaining project costs, approximately $224,000 is attributable to the
purchase of new software and operating equipment, which will be capitalized. The
remaining  $11,000 relates to other  remediation  efforts and will be charged to
expense as incurred.  The Company will continue to monitor its mission  critical
computer applications and those of its suppliers and vendors throughout the year
2000 to ensure that any latent Year 2000  matters  that may arise are  addressed
promptly.

Certain  statements  in this  Management's  Discussion  and Analysis  constitute
"forward  looking  statements"  within  the  meaning of the  Private  Securities
Litigation Reform Act of 1995. Such forward looking statements involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results,  performance, or achievements of the Company to be materially different
from any future results,  performance,  or achievements  expressed or implied by
such forward looking statements.  These forward looking statements were based on
various factors and were derived utilizing  numerous  important  assumptions and
other factors that could cause actual results to differ materially from those in
the forward looking statements, including, but not limited to: uncertainty as to
the Company's  future  profitability  and the  Company's  ability to develop and
implement   operational   and  financial   systems  to  manage  rapidly  growing
operations,  competition in the Company's existing and potential future lines of
business,  and other factors. Other factors and assumptions not identified above
were also involved in the derivation of these forward  looking  statements,  and
the failure of such other assumptions to be realized,  as well as other factors,
may also cause actual results to differ  materially  from those  projected.  The
Company  assumes no  obligation to update these  forward  looking  statements to
reflect  actual  results,  changes in  assumptions  or changes in other  factors
affecting such forward looking statements.


                                       15
<PAGE>

                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Payroll  Express.  In 1991, the Company engaged KPM, Inc. d/b/a/ Payroll Express
("Payroll  Express") to perform  certain  data  processing  services,  including
preparing  Forms 941 and filing them with Internal  Revenue  Service ("IRS") and
paying payroll and other taxes on behalf of the Company.  The Company terminated
its  relationship  with Payroll  Express  upon being  informed by the Chapter 11
Trustee for Payroll  Express that the Company had suffered a potential loss as a
result of a fraudulent  scheme  undertaken by Payroll Express and its principal,
David S. Kast, It appears that Payroll  Express failed to make certain  payments
to the IRS on the Company's behalf and falsely and  fraudulently  misrepresented
to the  Company  the dollar  amount of taxes  actually  paid to the IRS. It also
appears that a substantial portion of these funds  (approximately  $400,000) was
wrongfully  appropriated  by Payroll Express and Kast. This theft has created an
additional  federal tax  liability for the Company in the amount of $307,500 for
the years 1995 and 1996.  These sums do not include  interest or penalties since
the Company has been informed by the IRS that,  based upon its initial review of
this matter, interest and penalties may not be assessed.

The Company  has been  reimbursed  by its  insurance  carrier for a  substantial
portion of the above federal tax liability. The Company is also cooperating with
the  authorities in its ongoing  criminal  investigation  of Payroll Express and
Kast  and  has  filed  a  Proof  of  Claim  in the  Payroll  Express  bankruptcy
proceeding.

Vasu.  The Company  has been sued by a former  employee  for  alleged  breach of
contract and defamation. In a decision dated September 21, 1999, the Connecticut
District Court held that the claim for defamation must be arbitrated  under NASD
rules. Plaintiff has not commenced arbitration proceedings.  By Notice of Motion
dated  October 18,  1999,  the Company  moved to dismiss  the  complaint  in its
entirety.  The Company believes that the suit is without merit; however,  should
the plaintiff  prevail,  the Company believes that it is likely that the damages
will not be  material  to the  Company's  consolidated  financial  condition  or
results of operations.

Item 6. Exhibits and Reports on Form 8-K

The Company filed a report on Form 8-K dated February 1, 2000 reporting that the
Company's  Class B Common  Stock was listed on the Nasdaq Small Cap Market under
the ticker  symbol TMAV.  Previously,  the Class B Shares were quoted on the OTC
Bulletin under the ticker symbol TMAVB.

Signature

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                            Tremont Advisers, Inc.


Date: May 12, 2000                          /s/ Stephen T. Clayton
                                            ----------------------------------
                                            Stephen T. Clayton
                                            Chief Financial Officer
                                            (Duly authorized Officer and
                                            Principal Financial and Accounting
                                            Officer)



                                       16